AS oil companies warned on Thursday of the “imminent danger” posed to the economy by its order freezing oil prices in Luzon to October 15 levels, Malacañang assured the public that President Arroyo will not be pressured into lifting the order despite strong clamor from industry leaders and business groups.

The President’s spokesmen said in a news briefing she remains “determined” to implement Executive Order (EO) 839 unless otherwise recommended by the Joint Department of Energy-Department of Justice Task Force.

Still, the task force’s chief, Justice Secretary Agnes Devanadera, later in the day hinted at the possibility of a partial lifting, but stressed that EO 839 will continue to be enforced strictly until a consensus is forged from a crucial meeting that the task force will convene next week with stakeholders.

Asked whether the President feels any pressure to submit to the lobby of oil firms and business groups against EO 839, Deputy Presidential Spokesperson Anthony Golez said:  “The President will not be threatened by their clamor. The President has made a decision to effect the executive order and that is going to be done.”

Devanadera said some business groups, including oil companies, have submitted proposals to adopt new measures, including the partial lifting of the implementation of the controversial EO in some areas.

In an interview, Devanadera said the Task Force On Oil Deregulation together with other business groups and oil companies, including representatives from the transport sector, will meet next week to review all the proposals before coming out with new mechanisms on how to ease the suffering of those affected by recent typhoons Ondoy and Pepeng. Two more typhoons—Santi and Ramil—have since visited Luzon island, which the EO covers.

Devanadera said the task force and the business groups will discuss whether the emergency situation that led to EO 839 is still present or not.

Devanadera noted that even the members of the Philippine Chamber of Commerce and Industry were supportive of EO 839 after she reminded them that it was just temporary. Several business groups, the most forceful being the Joint Foreign Chambers, had warned against a prolonged use of the EO to ease people’s burdens, saying it would hurt people more than help them.

Devanadera said the assessment and recommendation of the National Disaster Coordinating Council would be given much weight in deciding whether to lift, modify or adopt new measures to help the typhoon victims.

She admitted that one of the common proposals from the business sector is to limit the imposition of the price-freeze directive in selected areas in Luzon that were badly devastated by the typhoons.

“But nothing is final yet. I don’t want to say that there will be a partial lifting of the executive order since proposals and ideas are still evolving,” Devanadera told reporters. 

Earlier, the Joint Foreign Chambers  sought a clear date for the termination of the implementation of EO 839 citing the uncertainty generated by the measure’s “open-ended nature.”

‘Imminent danger’ 

LOCAL oil players reiterated to the government on Thursday that the imminent danger to the economy, business and employment far outweighs the intended benefits of EO 839.

Total (Philippines) Corp., Pryce Gases, PTT Philippines Corp., Pilipinas Shell Petroleum Corp., Seaoil Philippines Inc., Flying V, USA 88, Filpride, Eastern Petroleum Corp., Petroleum Institute of the Philippines and the International Engineers Philippines gave their views in a position paper.

“A weakened oil sector, forced to sell at a loss, cannot continue to play its strategic role as the government’s partner in the nation’s growth and in ensuring an adequate level of supply given the instability of world prices of crude oil and petroleum products,” they added.

The oil companies said they are one with the government in wanting to help the victims of typhoons Ondoy and Pepeng. However, freezing the prices of fuel in Luzon to help typhoon victims carries disastrous short- and long-term risks for the whole country, including, eventually, the very people targeted to be helped.

When they said that Executive Order 839 will result in supply shortages, the oil companies explained that they do not intend to blackmail the government or to sabotage the economy. They simply meant to outline “what the consequences of EO 839 would be,” said the oil companies, adding that their industry has been accused of not being transparent and that they do not want to open their books.

The companies also asked President Arroyo to allow them to discuss the matter with her to find ways on how they can help those who truly need support without damaging the economy and driving awayinvestors.

“We know that everyone wants low prices and this is a popular move for now. But you have always said that your objective is not to be popular but to do what is good and right for the country. All of us have responded to the President’s call to assist and have been responsible corporate citizens and we are prepared to do more. Please allow us to sit down and discuss with you, so that you may reconsider recalling EO 839,” they said in appealing to President.

Ramon Villavicencio, Flying V chairman, said they are prepared to mitigate the impact of the higher oil prices on consumers. He proposed the staggering of the increase—estimated at P4.50 by the time the EO is lifted—over a three-week period or around P1.50 per liter per week. “We want to mitigate the impact to consumers so we will divide the impact over three weeks. The EO will be lifted soon because the higher authorities know that it is not viable as far as cost is concerned,” he added.

Villavicencio said if there is any change in the trend of international prices, whether downward or upward, the cost will be adjusted accordingly. If there is an increase, “we will add that or if there is a rollback, we will subtract that.” He added that oil companies do not plan to recover losses they incurred with the implementation of the EO.

“That’s past. We won’t recover that anymore. What we’re saying is that we just want to bring back pump prices at the current levels. At the correct levels to avoid prospective losses,” he said.

At the Palace, Mr. Golez reiterated that EO 839 was spurred by the primacy of public welfare, especially after the extensive damages caused by recent typhoons in Luzon.

Golez took exception to the assertion of Albay Gov. Joey Salceda, the Presidential Economic Adviser, that EO 839 favors the rich, noting that those in the well-off social classes, for example, can afford to spend more on gasoline while those in the lower classes have less to spare for transportation costs. With P.A. Isla